Malawi Export Ban Bypassed as Sovereign Metals Advances Kasiya Amid Global Tariffs

Strategic Infrastructure Investment

In a significant development for Sovereign Metals Limited, the Government of Japan has launched a US$7 billion initiative to upgrade the Nacala Logistics Corridor, the preferred transport route for the Kasiya Rutile-Graphite Project in Malawi. This funding, partly channelled through the African Development Bank, aims to expand capacity, refurbish infrastructure, and enhance resilience along the corridor, directly benefiting Kasiya by reducing bottlenecks and lowering transport costs to international markets.

The Nacala Corridor’s deep-water port access positions Kasiya strategically within Japan’s mineral security framework, underscoring the project’s growing geopolitical and commercial importance.

Progress on Definitive Feasibility Study

Sovereign Metals has completed critical components of its Definitive Feasibility Study (DFS), including extensive geotechnical investigations across all major infrastructure sites. Over 400 tests confirmed favourable subsurface conditions, enabling standardised foundation designs that could reduce engineering complexity and costs.

The company also finalised the design and supplier selection for a large-scale dry mining fleet tailored to Kasiya’s unique ore characteristics, which notably require no drilling, blasting, crushing, or milling. This approach promises lower capital and operating expenses over the proposed 25-year mine life.

Environmental and Community Advances

Rehabilitation trials at the pilot mining site have delivered exceptional results, with post-mining land productivity increasing crop yields fivefold compared to regional averages. This success not only de-risks the DFS but also strengthens Sovereign’s environmental, social, and governance (ESG) credentials by demonstrating effective land restoration and community engagement.

Graphite Market Dynamics and Quality Validation

The global graphite market is undergoing a fundamental shift following the US Commerce Department’s imposition of preliminary 93.5% anti-dumping duties on Chinese graphite imports. This tariff environment elevates Kasiya’s position as potentially the world’s largest and lowest-cost non-Chinese graphite producer, with an incremental production cost of US$241 per tonne.

Recent testwork has validated Kasiya graphite’s world-class quality for battery anode applications, achieving superior coated spherical purified graphite (CSPG) performance metrics. Samples have been distributed to leading anode manufacturers, supporting ongoing offtake discussions.

Regulatory Environment and Next Steps

Following Malawi’s new Executive Order banning raw mineral exports, Sovereign confirmed that Kasiya is unaffected due to its commitment to in-country beneficiation, producing premium rutile and graphite products suitable for high-end markets including aerospace and battery industries.

Looking ahead, Sovereign Metals aims to complete the DFS by Q1 2026, advance offtake negotiations, and continue community development programs, all while refining plant design and logistics planning to align with potential lenders and partners.